What Responsibilities Do I have During a Consumer Proposal?

One of the major advantages of a consumer proposal when compared to a bankruptcy is most people find the process to be less stressful. Today I am going to summarize the major duties that must be done in both a bankruptcy and a consumer proposal.

In a bankruptcy your duties include:

  • Providing monthly income and expense statements
  • Attending  two credit counselling sessions
  • Make the required payments to your trustee (This also includes making any required surplus payments)
  • Providing information that will allow the trustee to file the pre and post bankruptcy tax returns
  • If required, attend any meetings your trustee requests
  • Contact your trustee if your address, email or phone number changes
  • Cooperate with your trustee
  • Attend bankruptcy court if required

In a consumer proposal you have the following responsibilities:

  • Fulfil the terms of the proposal. If you fall three payments behind your proposal will be annulled.
  • Attending two counselling sessions
  • If required, attend any meetings your trustee requests
  • Contact your trustee if your address, email or phone number changes
  • Cooperate with the administrator of your consumer proposal as required

You will notice that a lot of the duties are the same or similar. However you likely also noticed there is more to do in a bankruptcy. You are required to provide tax information and monthly income and expense statements to your trustee. There is also the possibility of going to court in a bankruptcy. These are among the top reasons people decide to avoid bankruptcy and file a consumer proposal.

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